Bethlehem council backs East Allen water deal

City would take on township customers, who'd see lower bills. PUC approval needed.

March 15, 2011|By Nicole Radzievich, OF THE MORNING CALL

Bethlehem City Council on Tuesday unanimously approved the terms of a deal that would allow the city to take over East Allen Township's water system.

While Bethlehem hopes to break even within the next five years from the deal, its officials hope to position the city to score more customers as the township continues to develop.

Meanwhile, East Allen customers in neighborhoods where the city would take over water operations would see their water bills lowered.

Councilman J. William Reynolds called the agreement a "win-win."

"We have great water, a great product. It's not as easy as it should be to find new customers," Reynolds said. "I know this deal is a long time in the works."

The deal would affect the East Allen Municipal Authority's well customers in the East Allen Gardens, Shady Lane, Wil Mar Manor and Country Squire neighborhoods.

The city would also take over water operations in the Route 512 and Airport Road neighborhoods, where the township authority already supplies customers with city water.

Under the deal, Bethlehem would also take on the township authority's $350,000 in debt, allowing the authority to get out of the water business.

The terms would require Bethlehem to charge the East Allen customers the same rate as city customers. Bethlehem currently charges $3.53 per 1,000 gallons. East Allen's rate is $5 per 1,000 gallons. That rate was hiked last year from $3.63.

The deal paves the way for Bethlehem to one day hook those customers into the city's water supply from reservoirs in the Poconos.

The terms have already been approved by the Bethlehem Authority, which is the financial arm of the city's water business, and East Allen supervisors.

Now the city can move toward negotiating a sales agreement and expanding its territory into East Allen. The Pennsylvania Public Utility Commission must approve the territory expansion, and the localities would adopt ordinances for the transactions.

David Brong, city director of water and sewer resources, said the deal could take three to six months to go through the PUC, but could take longer if someone contests it.